- Fiat-pegged blockchain protocol, Terra (LUNA), has gained in value by more than 50% in a week, becoming the 12th largest crypto by market cap in the process.
- Terra is now ranked as the fifth-largest DeFi network, with a TVL of $12.77 billion.
- Terra (LUNA) is now available for staking on the Huobi Pool (NASDAQ:POOL), starting from as low as 0.1 LUNA.
- Stader Labs has teased the launch of LunaX, which will open up new possibilities for LUNA users.
Terra (LUNA) is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payment systems. While LUNA itself is not a stablecoin, it benefits from the price stability and wide adoption of fiat currencies.
LUNA, the native token of the Terra network, gained wide popularity in August 2021 for its 2,000% gains across the first seven months of the year, making it one of the best performers of 2021. So how has Terra fared in recent times?
Price Updates
Terra (LUNA) is still enjoying its exponential growth, even with the major cryptocurrencies currently proving incapable of surpassing their resistance levels.
LUNA has gained by an outstanding 50% in the last seven days, making it the best performing crypto in the top-100, ranked by market cap. In addition to this, LUNA has overtaken Shiba Inu as the 12th largest crypto in the process.
The seven day price chart for Terra (LUNA). Source: Tradingview
LUNA’s gains helped the crypto set a new all-time high of $66.21 on December 2nd. At the time of this writing, Terra (LUNA) is trading at $63.885, down from its intraday high of $66.21. Terra is now ranked as the 12th largest cryptocurrency, with a market cap of $24.78 billion.
The 24 hour price chart for Terra (LUNA). Source: Tradingview
Recent Developments and Future Events
Terra (LUNA) has quickly risen to the fore after mostly featuring in the background of decentralized finance (DeFi). With only 10 DeFi protocols on its network, Terra is now ranked as the fifth-largest blockchain project, with $12.77 billion TVL (total value locked).
The total value locked in Terra. Source: Defillama
The Terra network’s expansion is in full flow, and LUNA burning has attracted users to the network. In the final week of November, 7.2 million LUNA tokens were burnt. As a result, annualized staking return for LUNA has increased from 4.61% at the beginning of November, to 10.74% at the end of the month.
Huobi Pool, the world’s largest staking mining pool under Huobi Group, recently announced the launch of Terra LUNA staking.
Through Huobi Pool, investors can vote for notes and earn rewards on the platform. Users will benefit from up to 3.8% annualized returns by staking a minimum of 0.1 LUNA tokens.
On November 30th, Terra announced a proposal to increase the UST on Curve Finance, Ethereum’s leading AMM (automated market maker) for stablecoin swaps. The ultimate goal of all of these recently submitted proposals is for UST to become the “go-to” interchain stablecoin.
Stader Labs has teased the launch of LunaX. With its launch, users will be able to access auto-compounding on Liquid Luna, get liquidity fees from multiple pools, utilize leveraged staking, as well as access futures and options, and immediate liquidity on decentralized exchanges (DEX).
On The Flipside
- Although Terra is ranked as the fifth-largest DeFi network, it lacks the utility of the top platforms.
- While Terra has 10 protocols on its network, Ethereum has 326, Binance has 189, Avalanche 78, and Solana 38.
Community
Terra has a large community base and is one of the most active in the crypto space. The community of the Terra ecosystem refer to themselves as LUNAtics.
Members are additionally made to feel intrinsically part of the project through community calls and via governance of the project through staking.
LUNAtics hold a very bullish stance on the future of Terra (LUNA). Crypto analyst, @cryptomanran, shared why Terra could become a top-5 crypto, writing;
$LUNA will be top 5,here’s why;1.Insane Tokenomics (Luna/Terra burn)2.Great tech3.Decentralized web 3 money narrative.4.Charismatic/genius figure head!5.Strong community- increasing momentum6. Best VC support-all made insane returns 7.Lots of high caliber complex Projects— Ran Neu Ner (Plan C) (@cryptomanran) November 28, 2021
GMI Analyst, Remi Teto, wrote the following about the Terra project;
Remember that $Luna is only a tool in Terra ecosystem, sure it will generate wealth for Hodlers, but the success of the ecosystem will happen once $UST is the reference stablecoin on multichains. @terra_money is leading the way in creating a truly decentralized economy— Remi Tetot (@Remi_Tetot) December 2, 2021
Reacting to the news that banks would be exploring Terra, @lunaterraluna wrote;
The big banks are now beginning to explore what @terra_money & @anchor_protocol do as their basic function with $LUNA & $USTWould be great to see borrowers, big & small, sidestep the #Tradfi banks & just do this with $LUNA.... https://t.co/dlsrT38nWN— Lunáticos (,) (@lunaterraluna) December 2, 2021
Why You Should Care?
Terra continues to be a crypto worth watching. With just 10 protocols on its network, it still has a TVL of over $12.77 billion.
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